Petrol pumps in Delhi on strike demanding VAT cut

Petrol pumps across the national capital were shut on Monday in protest against the Delhi government's refusal to cut sales tax (VAT) on petrol and diesel.

But for a dozen company-owned-company-operated petrol pumps in the city, all pumps refused fuel, sending motorists running low on fuel and scrambling for alternate refuels.

"All 400 petrol pumps and linked CNG pumps shut operations from 6.00 am Monday and will remain closed till 5 am tomorrow (Tuesday)," said Delhi Petrol Dealers Association (DPDA) President Nishcal Singhania.

Pump operators, however, refuelled emergency service vehicles like ambulances and government vehicles so as to ensure essential services are not hit, he said.

Long queues were witnessed at COCO outlets that were the only lifeline for motorists in the national capital.

DPDA said the Union government with effect from October 5 slashed prices of petrol and diesel by Rs 2.50 by way of a cut in excise duty and asking state-owned oil firms to bear subsidy. This was matched by several states by reducing value-added tax (VAT).

Haryana and Uttar Pradesh (UP), which border the national capital, have reduced VAT, he said. "But Delhi government refused to reduce VAT on petrol and diesel, resulting in fuels becoming more expensive than bordering Haryana and UP."